I have gone thru some of the messages below and found that major of them are in earning range of 3-5 lacs and hence they are comparing their tax liablity with higher incomes and showing problems faced by them.However I must keep in mind persons with higher income may also have his own problems. But I thing is absoultely right why they should pay same percentage of tax as of higher income? In my opnion one must pay the tax in proportion to his earnings. Hence I propose simpler system tax should be same percentages as of his earning.
upto 1.0 lacs - no tax
upto 2.0 lacs - 2%
upto 3.o lacs - 3%
upto 4.0 lac - 4%
and so on.
getting a exemption should be same proportion of earning. One must save upto 30% of income and must get exemption for the same.
In proposed system although tax rates are low but people will feel comfortable in paying tax with out hidding the income and hence government will not lose anything and earning people will be happy to in proportion to income.
